Mr Narek Lachinyan

Problem 1.
1.
Price | Quantity Client 1 | Quantity Client 2 |
0 | 150 | 100 |
10 | 120 | 80 |
15 | 110 | 65 |
20 | 90 | 60 |
25 | 85 | 40 |
30 | 80 | 20 |
35 | 65 | 10 |
40 | 45 |5 |
45 | 22 | 3 |
50 | 0 | 0 |

2.
Price | Quantity Client 1 | Quantity Client 2 | Market Demand |
0 | 150 | 100 | 250 |
10 | 120 | 80 | 200 |
15 | 110 | 65 | 175 |
20 | 90 | 60 | 150|
25 | 85 | 40 | 125 |
30 | 80 | 20 | 100 |
35 | 65 | 10 | 75 |
40 | 45 | 5 | 50 |
45 | 22 | 3 | 25 |
50 | 0 | 0 | 0 |

3.
Because of inverse relationship between price and quantity.4.
2 people are willing and able to pay 45 for a book. 25 books will be demanded.

5.
Price | Quantity |
0 | 0 |
10 | 0 |
15 | 25 |
20 | 50 |
25 | 75 |
30 | 100 |
35 | 125 |
40 |150 |
45 | 175 |
50 | 200 |

6.
Because of direct relationship between price and supply.

7.

The equilibrium price is 30. The equilibrium quantity is 100.
Price | Supply | Market Demand|
0 | 0 | 250 |
10 | 0 | 200 |
15 | 25 | 175 |
20 | 50 | 150 |
25 | 75 | 125 |
30 | 100 | 100 |
35 | 125 | 75 |
40 | 150 | 50 |
45 | 175 | 25 |
50 | 200 | 0 |

8 and 9.

Whenthe market price is above the equilibrium price(for example 40) will happen surplus.

When the market price is below the equilibrium price(for example20) will happen shortage.

10.

Consumersurplus | 1000 |
Producer surplus | 2000 |
PROBLEM 2

Shifts in the demand curve will be to the left caused by change in tastes. Both equilibrium price and equilibrium quantity will decrease.The supply curve moves to the left because of changes in input prices. That means the equilibrium price will increase what will cause a decrease in sales.

The left shift of both,demand and supplycurves,will cause the equilibrium price increase which will be the reason of the decrease of the equilibrium quantity.

PROBLEM 3

The equilibrium price and quantity will decrease because of the...